ESOP

5th Circuit Upholds Strict Pleading Standard in BP Stock Drop Case

Author: Shaylor Steele and Joe Yonadi

BP sponsored an investment and savings plan which contained an ESOP component comprised of BP stock as an investment option for participants.  On June 24, 2010, plaintiff-investors sued BP due to the sharp decline in BP stock after the Deepwater Horizon drilling rig explosion that caused a massive oil spill.  Plaintiffs alleged the following:  (1) that the plan fiduciaries breached their duties of prudence and loyalty by allowing the plans […]

2017-01-01T14:04:19+00:00 September 29th, 2016|0 Comments

IBM Stock Drop Case Illustrates Heightened Post-Dudenhoeffer Pleading Standard

Authors:  Shaylor Steele and Joe Yonadi

On September 7, 2016 the U.S. District Court for the Southern District of NY dismissed separate lawsuits challenging IBM’s stock drop under both ERISA and the federal securities laws.  In Jander v. IBM (S.D.N.Y. Sept 7, 2016), the Court clearly outlines the heightened Dudenhoeffer pleading standard where the plaintiff’s must allege:  (1) an alternative action that the defendant could have taken that would have been consistent with the securities laws, […]

2017-01-01T14:04:19+00:00 September 27th, 2016|0 Comments